EY Legal Update_June 2015

Legal Update
June 2015
June 2015
Legal Update | Page 1
In this issue
►
June 2015
Decree No. 28/2015/ND-CP providing detailed regulations for
implementation of a number of articles of the Law on Employment
regarding unemployment insurance (“Decree 28”) issued on
12 March 2015, effective on 1 May 2015, concerning:
►
compulsory unemployment insurance coverage applicable to
labor contracts having a term from a full three (3) months to
below twelve (12) months (“Seasonal Labor Contracts”);
►
compulsory unemployment insurance coverage under
multiple labor contracts; and
►
employer reporting requirements regarding compulsory
unemployment insurance participation status.
Legal Update | Page 2
1. Compulsory unemployment insurance coverage applicable to Seasonal Labor
Contracts
A. Law on Employment
B. Decree 28
C. Implication
Employees working pursuant to
Seasonal Labor Contracts are
subject to compulsory
unemployment insurance
coverage.
If prior to 1 January 2015 an
employee signed a Seasonal
Labor Contract and (i) is
currently performing such
contract and (ii) the time of
completion of such contract is
still three (3) or more months
away, the employer must
arrange unemployment
insurance coverage for such
employee.
Some Seasonal Labor Contracts
entered into prior to 1 January
2015 that were not previously
subject to compulsory
unemployment insurance
coverage are now subject to
such unemployment insurance
coverage.
2. Compulsory unemployment insurance coverage under multiple labor contracts
A. Law on Employment
B. Decree 28
C. Implication
If an employee has entered into
and is concurrently
implementing multiple labor
contracts, then such employee
and the employer in the labor
contract that was first entered
into are responsible for
arranging unemployment
insurance coverage.
If an employee has entered into
multiple labor contracts and has
unemployment insurance
coverage pursuant to the labor
contract that was first entered
into but then terminates or
changes such contract resulting
in the employee no longer being
covered under the first contract,
then the subsequent employer
and the employee must
participate in unemployment
insurance in accordance with the
regulations of the law.
There is clearer guidance
regarding the requirement of
compulsory unemployment
insurance contributions in the
case of multiple labor contracts.
3. Employer reporting requirements regarding compulsory unemployment
insurance participation status
A. Law on Employment
B. Decree 28
C. Implication
There is no mention of any
reporting requirement by
employers regarding
compulsory unemployment
insurance participation status.
By January 15 of each year,
employers subject to compulsory
participation in unemployment
insurance must lodge a report on
unemployment insurance
participation status to the
Department of Labor – Invalids
and Social Affairs.
This requirement would facilitate
local labor authorities managing
the status of compulsory
participation in unemployment
insurance in their localities.
June 2015
Legal Update | Page 3
Contact us
For more information on this Legal Update or our Legal
Services, please contact:
Thao Hung Nguyen
[email protected]
Director
Trang Ha
[email protected]
Senior Associate
EY | Assurance | Tax | Transactions | Advisory
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© 2015 Ernst & Young Law Vietnam Limited
Liability Company
All Rights Reserved.
APAC No. 16000181
ED None
This material has been prepared for general
informational purposes only and is not intended to be
relied upon as accounting, tax, or other professional
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June 2015
Legal Update | Page 4